THE WINDIES - SPOT REPORTS FROM THE EASTERN

UNCLAS SECTION 01 OF 02 BRIDGETOWN 000968 SIPDIS SENSITIVE SIPDIS DEPT FOR WHA/CAR SANTO DOMINGO FOR FCS SOUTHCOM ALSO FOR POLAD E.O. 12958: N/A TAGS: EAID EFIN PGOV PREL OFDP OVIP SENV JA XL SUBJECT: THE WINDIES - SPOT REPORTS FROM THE EASTERN CARIBBEAN - MAY 2006 REF: BRIDGETOWN 785 ANTIGUA AND BARBUDA - PM Travels to Japan Ahead of Whaling Conference - Indictments Heat up Antigua WTO Case GRENADA - Grenada Gets Debt Relief from Paris Club ST. KITTS AND NEVIS - Economy and Debt Grow ST. LUCIA - UN Ambassador Resigns to Run for Parliament -------------- ANTIGUA AND BARBUDA -------------- - PM Visits Japan Ahead of Whaling Conference ¶1. (U) Antigua and Barbuda Prime Minister Baldwin Spencer traveled to Tokyo in May to meet Japanese Prime Minister Junichiro Koizumi and other officials. Accompanied by Antigua Minister for Tourism Harold Lovell and the country's new Ambassador to Japan and representative to the International Whaling Conference, Anthony Liverpool, the delegation is reportedly examining how to make Antigua a favored destination for Japanese tourists. ¶2. (SBU) Comment: This unlikely expedition is connected to Japan's quest to end the ban on commercial whaling at the International Whaling Conference, which will meet in June in St. Kitts. Antigua, like other Eastern Caribbean countries, has been a vocal proponent of ending the ban on hunting whales although the small island nation has no real interest in whaling (reftel). The PM's trip, along with substantial economic assistance, is likely part of Antigua's reward for supporting Japan. End comment. - Indictments Heat up Antigua WTO Case ¶3. (U) The USG's indictment for money laundering of Antigua- based Internet gaming operators William Scott and Jessica Davis, and their related companies, Soulbury Ltd. and World Wide Telesports (WWTS),has caused a flurry of condemnation from Antigua, an off-shore center for Internet gambling. Government of Antigua (GOA) officials said they see a link between the indictment of two individuals who have lawful businesses in Antigua and the World Trade Organization's (WTO) 2005 decision that found certain U.S. prohibitions on Internet gambling to be in violation of global trade rules. Antigua's lead counsel on the WTO case believes that the indictment demonstrates that the USG has not only failed to comply with the WTO decision but is now acting contrary to the WTO's finding against the U.S. Another official said that the indictment gives the impression that the USG does not intend to work through the WTO process to find a solution to the dispute with Antigua. -------------- GRENADA -------------- - Grenada Gets Debt Relief from Paris Club ¶4. (U) The Paris Club of government creditors agreed to reschedule US$16 million of Grenada's debt. The agreement reduces the debt service Grenada owes the Paris Club members by more than 90 percent. This arrangement covers debt owed as of January 2006, as well as credits falling due between January 2006 and December 2008. This arrangement, coupled with a new International Monetary Fund (IMF) economic stabilization program, should help Grenada continue its recovery from Hurricane Ivan, which devastated the island and its economy in September 2004. -------------- ST. KITTS AND NEVIS BRIDGETOWN 00000968 002 OF 002 -------------- - Economy and Debt Grow ¶5. (U) St. Kitts reported an economic growth rate of 4.8 percent for 2005, due largely to its successful tourism sector. The nation's public debt also grew by 6.8 percent during the past year, driven primarily by the closure of the sugar industry late in 2005 and subsequent Government payments to displaced sugar workers. Reports from the Caribbean Development Bank warn that growing debt could cause interest rates to rise and discourage private investment in St. Kitts. The Government can look forward, however, to making the last payments to former sugar workers later this year. Combined with the end of subsidies for the now shuttered sugar industry, this reduction in financial obligations should result in a significant decline in the Government's deficit spending. -------------- ST. LUCIA -------------- - UN Ambassador Resigns to Run for Parliament ¶6. (U) St. Lucia's Ambassador to the UN, Julian Hunte, has resigned his position in order to run for Parliament in upcoming general elections as a candidate of the ruling St. Lucia Labor Party (SLP). Hunte was reportedly asked to run for the seat, which he represented in Parliament from 1987 to 1996, after the SLP's original candidate dropped out of the race. Hunte withdrew from electoral politics in 1997, despite his distinctive Parliamentary service, following an unsuccessful struggle against current Prime Minister Kenny Anthony for leadership of the SLP. More recently, Hunte has found himself well regarded by St. Lucians for his role as UN Ambassador. Observers believe Hunte's strong reputation should help his chances in the general election expected later this year. KRAMER